Kmart and Salvation Army staff are thanking locals for their generosity, after thousands of gifts were donated to a combined Christmas appeal.

Last month people placed 3,450 presents under a Christmas tree in the Dunedin Kmart store.

Those gifts were then distributed by the Salvation Army to local families in need at Christmas.

It was part of a nationwide appeal, which saw almost 43,000 gifts donated.

About $10,000 was also pledged.

Kmart Dunedin store manager Ed Levey says those who donated are the "shining stars" of the festive season.